Using the information provided for Global, prepare the company's journal entry to record income taxes for 2012 and 2011. Round your answers to two decimal places. If an amount box does not require an entry, leave it blank.Using the information provided for Global, determine the company's effective tax rate for 2012 and 2011. Round your answers to two decimal places. 20122011Effective tax rate % % Global, Inc. provides consulting services throughout the world. The company pays taxes to the nation where revenues are earned. Information about the company's taxes is presented below:Global, Inc.Components of Income Tax Expense(in millions)20122011Current - Federal$ 35.60$ 29.80- Foreign- State and Local53.8665.8517.1515.28Total Current$106.61$110.93Deferred - Federal$ 10.56S 8.54- Foreign3.286.57Total Deferred$ 13.84$ 15.11Total Income Tax Expense$120.45$126.04Components of Income before Taxes20122011United States$155.45$150.29Foreign142.85134.50Total$298.30$284.79Required:Hidea. Using the information provided for Global, prepare the company's journal entry to record income taxes for 2012 and 2011. Round your answers to two decimal places. If anamount box does not require an entry, leave it blank.20122011b. Using the information provided for Global, determine the company's effective tax rate for 2012 and 2011. Round your answers to two decimal places.20122011Effective tax rate9%96

Journal entry: A journal entry is used to record day-to-day transactions of the business by debiting…

Answered: Using the information provided for…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Using the information provided for Global, prepare the company's journal entry to record income taxes for 2012 and 2011. Round your answers to two decimal places. If an amount box does not require an entry, leave it blank.

Using the information provided for Global, determine the company's effective tax rate for 2012 and 2011. Round your answers to two decimal places.

	2012	2011
Effective tax rate	%	%

Global, Inc. provides consulting services throughout the world. The company pays taxes to the nation where revenues are earned. Information about the company's taxes is presented below:
Global, Inc.
Components of Income Tax Expense
(in millions)
2012
2011
Current - Federal
$ 35.60
$ 29.80
- Foreign
- State and Local
53.86
65.85
17.15
15.28
Total Current
$106.61
$110.93
Deferred - Federal
$ 10.56
S 8.54
- Foreign
3.28
6.57
Total Deferred
$ 13.84
$ 15.11
Total Income Tax Expense
$120.45
$126.04
Components of Income before Taxes
2012
2011
United States
$155.45
$150.29
Foreign
142.85
134.50
Total
$298.30
$284.79
Required:
Hide
a. Using the information provided for Global, prepare the company's journal entry to record income taxes for 2012 and 2011. Round your answers to two decimal places. If an
amount box does not require an entry, leave it blank.
2012
2011
b. Using the information provided for Global, determine the company's effective tax rate for 2012 and 2011. Round your answers to two decimal places.
2012
2011
Effective tax rate
9%
96

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